Capital gain account in banks

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Adity Pal (Querist)

29 November 2012 respected expert!

please tell me the concept of capital gain account opened in banks. the maturity and interest implications..

can a cap gain account be converted into fixed deposit and can it be close before 3 year, if so, then CA certificate is needed or not..

urgent, reply ASAP!

Thank youe,
aditi.pal59@gmail.com

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)

29 November 2012 Two types of Accounts in Bank for Capital Gains deposit Scheme.Generally available with all urban bank branches.
Account ‘A’ (SB a/c) with interest rate as applicable to SB A/cs.
Account ‘B’ (Term Deposit cumulative/ non-cumulative) with interest rate as per Fixed Deposit rates.
Amount can be withdrawn from deposit “A” (Savings Bank Account) by furnishing an application in form ‘C’ alongwith Pass Book.Cheque facilty is NOT available for this.
Premature withdrawal from Deposit ‘B’ is permitted by converting account from ‘B’ to ‘A’ and by levying 1% penal interest for premature payment as in case of TDRs. Form B will be used for conversion of Account ‘B’ to ‘A’.
Amount drawn from Account ‘A’ has to be utilized within 60 days from the date of such withdrawal for the purpose mentioned in the relevant sections. Unutilized amount should be re-deposited in Account ‘A’ immediately.
Non-compliance of this rule will render the depositor to lose exemptions under capital gains.CA Certificate is not required.But you will have to show in the ITR if before 3 years a/c is closed and used for other purpose.

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Adity Pal

Adity Pal (Querist)

28 December 2012 Thank U sir,
It is really helpful.. :-)

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